Wells Fargo Starts IAC/InterActiveCorp (IACI) at Market Perform; Momentum for Best-in-Class Online Personals Business

Wells Fargo initiates coverage on IAC/InterActiveCorp (NASDAQ: IACI) with a Market Perform. PT $46.00.

Wells analyst says, "In conjunction with our launch of the Small & Mid-Cap Digital Media sector, we are also initiating coverage of AOL (NYSE: AOL), Velti (Nasdaq: VELT), WebMD (Nasdaq: WBMD), ValueClick (Nasdaq: VCLK), and Demand Media (NYSE: DMD). We assign the sector an Overweight rating as we believe strong growth opportunities remain for companies that are well positioned to capture continuing migration of traditional media dollars to online channels. While we view the sector favorably, we are selective with our picks based on strategic positioning, recognizing that competition for online advertising spending remains fierce and the structural landscape is evolving rapidly."

"We view IACI has an excellent operator of a best-in-class online personals
business with strong momentum, attractive subscription based revenue model,
and strong international growth opportunities. While the personals opportunity
is challenging to size, in addition to international we see further penetration
opportunity domestically and evolution of its product offering as likely core
growth avenues. Consolidation of leading European personals operator Meetic
presents turn-around opportunity in markets that share cultural online similarities with North America."

For more ratings news on IAC/InterActiveCorp click here and for the rating history of IAC/InterActiveCorp click here.

Shares of IAC/InterActiveCorp closed at $41.76 yesterday.

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